PRICING

Identifying alternative, more competitive pricing plans for a large legal team

This client was a legal team which wanted to pitch for work retained by another team. The tender needed a consideration of alternative pricing, but had no guidance on what that might be. In short, they needed a clear, innovative pricing mechanism strong enough to draw potential customers away from their existing provider.

We started by looking at similar work we carried out for other clients. That allowed us to profile it, then make an assessment on volumes based on what we knew about the potential work. We also assessed risks to our proposals, determined our walk-away point before negotiating and considered what value-added services we could offer. Ultimately, we pitched a fixed-price annual retainer based on determined case volumes and a risk profile. However, we set a collar and a cap in order to share the risks and rewards with the target.

The tender was successful. Initially, 50% of the work was passed to my client and after year one, 100% with the final position being worth a high six figure contract. In addition to this win on turnover our initial work on the team structure and systems required in anticipation of growth meant the resulting profitability on the project was above target.

Testimonial

Helen’s keen eye for alternative pricing beyond hourly rates has been critical on key bids and has delivered healthy margins. She has a no fuss approach and always returns work in a timely fashion and within budget. A great asset to any business!